BILL NUMBER: AB 972	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 28, 2012
	AMENDED IN SENATE  JUNE 13, 2012
	AMENDED IN SENATE  AUGUST 15, 2011
	AMENDED IN SENATE  JUNE 29, 2011
	AMENDED IN SENATE  JUNE 15, 2011
	AMENDED IN ASSEMBLY  APRIL 13, 2011

INTRODUCED BY   Assembly Member Butler

                        FEBRUARY 18, 2011

   An act  to amend Section 3203 of, and  to add Sections
3017  and 3203.5 to   , 3017.1, 3017.2, and
3017.3 to,  the Public Resources Code, relating to oil and gas.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 972, as amended, Butler. Oil and gas: hydraulic fracturing:
moratorium.
   Under existing law, the Division of Oil, Gas, and Geothermal
Resources in the Department of Conservation regulates the drilling,
operation, maintenance, and abandonment of oil and gas wells in the
state. The State Oil and Gas Supervisor supervises the drilling,
operation, maintenance, and abandonment of wells and the operation,
maintenance, and removal or abandonment of tanks and facilities
related to oil and gas production within an oil and gas field
regarding safety and environmental damage. Existing law requires an
operator of a well, before commencing the work of drilling the well,
to obtain approval from the State Oil and Gas Supervisor or a
district deputy.
   This bill would, until regulations governing hydraulic fracturing
have been adopted, prohibit the supervisor and the district deputy
from approving the drilling of a well in which hydraulic fracturing,
as defined, is used or is proposed to be used in the production of
oil and gas. This bill would define, among others, the terms
hydraulic fracturing fluid and proppants. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3017 is added to the Public Resources Code, to
read: 
   3017.  "Hydraulic fracturing," "fracking," "hydrofracking,"
"hydrofracturing," and "unconventional shale drilling" means a
technique used in preparing a well that typically involves the
pressurized injection of water and a mix of chemicals, compounds, and
materials into an underground geologic formation in order to
fracture the formation, thereby causing or enhancing, for the
purposes of this division, the production of oil or gas from a well.

    3017.    "Hydraulic fracturing" means a well
stimulation treatment used in completing a well that typically
involves the pressurized injection of hydraulic fracturing fluid and
proppant from the well into an underground geologic formation in
order to fracture the formation, thereby causing or enhancing, or
intending to cause or enhance, for the purposes of this division, the
production of oil or gas from a well. Alternate terms include, but
are not limited to "fracking," "hydrofracking," and "hydrofracturing."

   SEC. 2.    Section 3017.1 is added to the  
Public Resources Code   , to read:  
   3017.1.  "Hydraulic fracturing fluid" means a base fluid mixed
with physical and chemical additives, including proppants, for the
purpose of hydraulic fracturing. Additives may be of any phase. A
hydraulic fracturing treatment may include more than one hydraulic
fracturing fluid. 
   SEC. 3.    Section 3017.2 is added to the  
Public Resources Code   , to read:  
   3017.2.  "Base fluid" is a continuous phase liquid or gas used to
transmit pressure to the underground geologic formation. 
   SEC. 4.    Section 3017.3 is added to the  
Public Resources Code   , to read:  
   3017.3.  "Proppants" mean materials inserted or injected into the
underground geologic formation that are intended to prevent fractures
from closing. 
   SEC. 5.    Section 3203 of the   Public
Resources Code   is amended to read: 
   3203.  (a) The operator of any well, before commencing the work of
drilling the well, shall file with the supervisor or the district
deputy a written notice of intention to commence drilling. Drilling
shall not commence until approval is given by the supervisor or the
district deputy. If the supervisor or the district deputy fails to
give the operator written response to the notice within 10 working
days from the date of receipt, that failure shall be considered as an
approval of the notice  , except as provided for in subdivision
(d),  and the notice, for the purposes and intents of this
chapter, shall be deemed a written report of the supervisor. If
operations have not commenced within one year of receipt of the
notice, the notice shall be deemed canceled. The notice shall contain
the pertinent data the supervisor requires on printed forms supplied
by the division or on other forms acceptable to the supervisor 
and shall indicate if a hydraulic fracturing treatment will be used
or is planned to be used in completing the well  . The
supervisor may require other pertinent information to supplement the
notice.
   (b) After the completion of any well, this section also applies as
far as may be, to the deepening or redrilling of the well, any
operation involving the plugging of the well, or any operations
permanently altering in any manner the casing of the well. The number
or designation of any well, and the number or designation specified
for any well in a notice filed as required by this section, shall not
be changed without first obtaining a written consent of the
supervisor.
   (c) If an operator has failed to comply with an order of the
supervisor, the supervisor may deny approval of proposed well
operations until the operator brings its existing well operations
into compliance with the order. If an operator has failed to pay a
civil penalty, remedy a violation that it is required to remedy to
the satisfaction of the supervisor pursuant to an order issued under
Section 3236.5, or to pay any charges assessed under Article 7
(commencing with Section 3400), the supervisor may deny approval to
the operator's proposed well operations until the operator pays the
civil penalty, remedies the violation to the satisfaction of the
supervisor, or pays the charges assessed under Article 7 (commencing
with Section 3400). 
   (d) (1) No notice of intention to commence drilling shall be
approved for any well where a hydraulic fracturing treatment will be
used or is planned to be used in completing the well until
regulations governing hydraulic fracturing treatments are adopted by
the division and have taken effect.  
   (2) The hydraulic fracturing treatment regulations shall be
comprehensive and ensure that the integrity of the well and well
casing are maintained.  
  SEC. 2.    Section 3203.5 is added to the Public
Resources Code, to read:
   3203.5.  Notwithstanding any other law, until regulations
governing hydraulic fracturing have been adopted, the supervisor or a
district deputy shall not approve or issue a permit authorizing the
drilling of a well pursuant to this division in which hydraulic
fracturing is used or is proposed to be used in the production of oil
and gas.